Intermediate Accounting Research

1. Considering the section descriptions provided in the chapter (pp. 11-12), identify the section that you would consult to determine:

a. Whether lease guidance applies to natural resources, such as land with mineral deposits.

b. How entities should present basic EPS for continuing operations on the income statement.

c. What disclosures are required for companies preparing consolidated financial statements.

d. How to measure the effects of inventory obsolescence.

Chapter 1 I The FASB Codification: Introduction and Search Strategies Sections Good news-g familiar subtopic uses the same section titles, to the extent they apply uidance within the Codification is organized very logically, once you become the sections. Sections are used to organize guidance within each subtopie; each Figure 1-5 illustrates a list of sections available under the subtopic Investments-Equ Method and Joint Ventures Overall. Notice that each section includes a +sign, i a user must click on the section title to be directed to content. Finally, notice that a user's s path is shown at the top of the screenshot. In this case, the search for the Investments topic began in the "Assets" area. ndicating that Home Assets 323 Investments-Equity Method and Joint Ventures 10 Overall Figure 323 Investments-Equity Method and Joint Ventures List of sections under the Equ 10 Overall To join ail Sections within tis Subsepic, alick JOIN ALL SECTIONS Collapse I Expand - 323 Investments-Equity Method and Joint Ventures So 10 Overal 4 00 Status +05 Overview and Background + 15 Scope and Scope Exceptions 20 Glossary + 25 Recognition + 45 Other Presentation Mattors + 55 Implementation Guidance and llustrations 65 Transition and Open Effective Date Information +75 XBRL Elements + 800 Status +S45 Other Presentation Matters + 550 Disclosure + 555 implementation Guidance and llustrations +S99 SEC Materials Reproduced with permission of the Financial Accounting Foundation. So, how do you know which section is relevant to your search? Take a moment to under- stand what information is located within each section, as described below Section Number (xxx-yy-00) Section Name Description Provides references and links to Accounting Standards Updates that have changed the content of the subtopic Status Overview and Background Provides general overview and background information for subtopics. Describes in general terms what transactions the subtopic is intended to address. 05 Objectives States the high-level objectives of the subtopic. 10 Scope and Scope Exceptions Answers the question: Does this guidance apply to my transaction? It is assumed that all transactions and entities are subject to guidance 15 unless granted a scope exception. Defines all glossary terms used in a subtopic. The Codification also includes a Master Glossary, which includes all glossary terms used within the Codification. 20 Glossary Describes what items can be recorded in the financial statements, when an item can be recorded, and how an item should be recorded. Describes at what value (i.e., how much?) a financiai statement item should be initially recognized. Also known as "day 1" measurement. 25 Recognition 30 Initial Measurement